What to do with RM10,000?
In this month’s Personal Money, there was an interesting article which asks the above question, especially when we near the end of the year and bonus is in view.
There were some ideas in there, among others:
1) Create an emergency fund – typically 3-6 months of your monthly expenses if you are employed.
This is something which I have also tried to do in the past with little success. However, we have to wake up to the realities and think about what would happen if we get laid off or if we fall sick and are unable to generate income? This would be especially so during the current economic situation.
2) Boost your savings – you should not stop saving although the world economy is shaky.
Could not agree more on this. Savings should be a habit and not something we time according to the market conditions. Many people I know say that they will save when the time is right. When is the time right anyway? Do not wait, start today, if only it’s RM1.00!
3) Pay off your credit card bills – else the interest will kill you slowly!
Why carry a balance in the first place? Spend what you have, not what you believe you will have.
4) Learn a skill – cooking for example, to save money from eating at home.
This is a pretty subjective thing. Not all skills can yield immediate results and savings. For example, flower arrangement. This will take months if not years to perfect and I cannot imagine being able to save money by arranging my own flowers. It would have been one of the first things I stop buying when the economy is not doing well.
5) Pick up a new language – it would help put you on the road to success.
I fail to see how my ablity to converse in Japanese, German, French etc can help me weather through the economic downturn. Hmm, maybe I can go be the translator to the tourists that come here – or are they still coming??
6) Change your career – by having sufficient money to help you through, you can take the risk of changing careers – from your boring day job to your dream job.
This is going to take more than just knowing what your dream job is, it is also going to take guts.
7) Publish a book – example given here was on a blogger who turned into an author and wanted to publish a book. This money should come in handy.
Interesting, so what are we bloggers thinking about doing?
8 ) Take a trip – unwind and recharge.
Sometimes, this it the best thing to do to figure out what you want in life. Just be careful of the countries you are going to now.
9) Invest in real estate – bargains galore!
This is one of my firm belief. I still think that the property sector is heading into a soft, if not declining, market. Wacth the classifieds carefully, auction houses, your neighbours talking etc.
10) Go for alternative investments – art and wine?
This is a great option but then we also hear about all the hassle of storing and insuring the actual product. Better to find a fund that invests in alternative asset class. Moreover, we also know that a diluted portfolio will result in difficulties in managing and hence maximizing your returns. Stick to what you know and keep the objectives checked. Regular savings/ investments will also help.
11) Get financial advice – from financial planners on what to do, by when, for what, in where and most importantly, how??
Yup, some help along the way to nudge us in the right way is worth the money paid. Just make sure that the financial planners are independant and not tied to any product, else you will end up buying their product, more than actually getting proper advice.
12) Start a business – and don’t look back
Agree, find the business, write the plan, have the budget kept and may your profits roll in!
13) Improve your home
Why not? But beware of cunning contractors! Shop and bargain for the best prices, then watch them work. You do not know when they will substitute materials!
14) Get exercise aids – why spend money at the gym when you can start one at home.
Well, why not, if that is what you prefer. I personally prefer the gym. Apart from getting out of the house, there is also a chance to meet people and learn/ observe fom them.
15) Invest – if you have a long term view, buy stocks which has lost half their value.
Duh!
16) Protect your loved ones – think insurance and estate planning.
I think this should be the first thing on the list. Whatever your ability to earn, you need to protect it first for your loved ones before thinking about investments and savings etc.
My personal preference if I have RM10,000 today? Pour it into the off-limits stocks (financials esp.) and spend RM1,000 on some great Christmas presents for family and friends. We all need to do our bit to spin the economy right?
Well, what do you think? This is the list that was shared with the readers. What would you do with RM10,000 today?
